Individual PER simulator: retirement capital and tax saving

Simulate your individual PER

The simulator computes your projected capital and the cumulative tax saving according to your marginal tax rate. Your data is neither stored nor transmitted.

Why the PER is one of France’s sharpest tax levers

The individual PER is one of the rare schemes where the State co-finances your savings. Your contributions are deducted from your taxable income up to an annual ceiling (10% of your professional income, with a floor and a cap). At a 41% marginal rate, €5,000 paid in generates €2,050 of immediate tax saving: your real effort is only €2,950.

This is exactly why the PER grows more powerful as your income rises. Conversely, for a low bracket (0% or 11%), the entry benefit is thin and other wrappers — life insurance, the PEA equity plan — are often preferable.

It is a locked-in form of savings, but with exit doors: early release is allowed to buy your main residence, or in the event of a life accident. The real art lies in steering contributions against your marginal rate, year after year — which is precisely where a wealth advisor adds value.

The 3 levers that make the PER work for you

Lever 1 — the immediate deduction, amplified by your tax bracket

Each contribution is deducted from your taxable income within an annual ceiling (10% of your professional income, with a floor and a cap). The saving equals your contribution multiplied by your marginal tax rate (TMI): at 41%, €5,000 paid in returns €2,050 straight away, so your real effort is €2,950. The higher your bracket, the larger the State’s share of the effort.

Lever 2 — tax-free compounding until exit

Inside the PER your capital compounds with no annual taxation: gains are not taxed year by year as they are on an ordinary securities account. Over a long horizon, this deferral lets the markets work on the gross amount, contributions and gains alike, which materially lifts the final capital.

Lever 3 — the bracket differential between paying in and drawing out

The whole strategy rests on the gap between your marginal rate today and at retirement. You deduct at 41% now and, more often than not, draw down at a lower bracket later. The deducted contributions are added back to income tax on exit; the gains are taxed at the 31.4% flat tax (PFU). Get the timing right and the differential becomes a durable gain.

Worked example — Antoine Lefèvre, 45, top-bracket earner

Antoine Lefèvre, 45, pays income tax at a 41% marginal rate. He opens an individual PER and pays in €5,000 a year for 20 years. Here is what the deduction changes.

Over 20 years Antoine deducts €100,000 from his taxable income, saving roughly €41,000 in income tax along the way, while his capital compounds tax-free until retirement. The point is not to avoid tax forever but to shift it to a moment — retirement — when his marginal rate is likely lower. That is the difference between a product and a strategy.

The tax saving, engine of the PER

The individual PER is one of the rare schemes where the State co-finances your savings. Your contributions are deducted from your taxable income up to an annual ceiling (10% of your professional income, with a floor and a cap). At a 41% marginal rate, €5,000 paid in generates €2,050 of immediate tax saving: your real effort is only €2,950.

This is why the PER grows more powerful as your income rises. Conversely, for a low bracket (0% or 11%), the entry benefit is thin and other wrappers (life insurance, the PEA equity plan) are often preferable.

Exit as capital or as an annuity

At retirement you choose: a lump sum (in one or several instalments), a lifetime annuity, or a blend. The amounts matching the deducted contributions are then added back to income tax; the gains are taxed at the 31.4% flat tax (PFU). The benefit therefore rests on the bracket differential: you deduct at 41% today and often draw down at a lower bracket at retirement.

The PER also allows early release to buy your main residence, or in the event of a life accident. It is locked-in savings, but with exit doors.

A wrapper to be steered, not simply opened

The PER rewards an active approach: contributions calibrated against your marginal rate, paid in heavily in high-income years and eased off in others, and an exit plan — capital or annuity — designed around your overall wealth at retirement. This is exactly the kind of trade-off a wealth advisor structures with you.

Run your projection above, then book a call: we will size your contributions against your bracket and build the exit strategy best suited to your situation, today and at retirement.

Frequently asked questions

How much can I deduct each year?

Your contributions are deductible up to an annual ceiling — broadly 10% of your professional income, with a floor and a cap set each year. Unused allowance from the previous three years can also be carried forward, which is useful in a high-income year.

Is my money locked until retirement?

In principle yes, but there are exit doors: early release is allowed to buy your main residence, or in the event of a life accident (disability, end of unemployment benefit, over-indebtedness). It is tunnel savings with genuine emergency exits.

How is the PER taxed when I draw it down?

The amounts matching your deducted contributions are added back to income tax on exit; the gains are taxed at the 31.4% flat tax (PFU). The strategy works on the bracket differential: deduct at a high rate today, draw down at a lower rate at retirement.

Is the PER worth it if my tax bracket is low?

Less so. The entry benefit equals your contribution times your marginal rate, so at 0% or 11% the leverage is thin. Below the 30% bracket, a life-insurance contract or a PEA equity plan is often a better fit. The PER shines for high earners.